← Chapter 17 - Homework Question 3 of 5 View Policies Show Attempt History < > Current Attempt in Progress 12.27/20 E Ritt Ranch & Farm is a distributor of ranch and farm equipment. Its products range from small tools, power equipment for trench- digging and fencing, grain dryers, and barn winches. Most products are sold direct via its company catalog and Internet site. However, given some of its specialty products, select farm implement stores carry Ritt's products. Pricing and cost information on three of Ritt's most popular products are as follows. Standalone Item Selling Price (Cost) Mini-trencher $3,600 ($2,000) Power fence hole auger 1,200 (800) Grain/hay dryer 14,000 (11,000) Respond to the requirements related to the following independent revenue arrangements for Ritt Ranch & Farm. (a) Your answer is correct. On January 1, 2025, Ritt sells 40 augers to Mills Farm & Fleet for $48,000. Mills signs a 6-month note at an annual interest rate of 12%. Ritt allows Mills to return any auger that it cannot use within 60 days and receive a full refund. Based on prior experience, Ritt estimates that 5% of units sold to customers like Mills will be returned (using the most likely outcome approach). Ritt's costs to recover the products will be immaterial, and the returned augers are expected to be resold at a profit. Prepare the journal entry for Ritt on January 1, 2025. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) (b) Date Account Titles and Explanation Jan. 1, 2025 Notes Receivable Sales Revenue (To record sales) Jan. 1, 2025 Cost of Goods Sold Inventory (To record cost of goods sold) eTextbook and Media Solution List of Accounts Your answer is correct. Debit 48,000 32,000 Credit 48,000 32,000 Attempts: unlimited On August 10, 2025, Ritt sells 16 mini-trenchers to a farm co-op in western Minnesota on account. Ritt provides a 4% volume discount on the mini-trenchers if the co-op has a 15% increase in purchases from Ritt compared to the prior year. Given the slowdown in the farm economy, sales to the co-op have been flat, and it is highly uncertain that the benchmark will be met. Prepare the journal entry for Ritt on August 10, 2025. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) (c) Date Account Titles and Explanation Aug. 10, 2025 Accounts Receivable Sales Revenue (To record sales) Aug. 10, 2025 Cost of Goods Sold Inventory (To record cost of goods sold) eTextbook and Media Solution List of Accounts - Your answer is partially correct. Debit 57,600 32,000 Credit 57,600 32,000 Assistance Used Attempts: unlimited Ritt sells three grain/hay dryers to a local farmer at a total contract price of $45,200. In addition to the dryers, Ritt provides installation, which has a standalone selling price of $1,000 per unit installed. The contract payment also includes a $1,200 maintenance plan for the dryers for 3 years after installation. Ritt signs the contract on June 20, 2025, and receives a 20% down payment from the farmer. The dryers are delivered and installed on October 1, 2025, and full payment is made to Ritt. Prepare the journal entries for Ritt in 2025 related to this arrangement. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,275. List all debit entries before credit entries. Record journal entries in the order presented in the problem. Do not round intermediate calculations.) (d) Date Account Titles and Explanation June 20, 2025 Cash Accounts Receivable Debit 9,040 36,160 Unearned Service Revenue 1,174 Unearned Sales Revenue Oct. 1, 2025 Cash Accounts Receivable (To record payment received) eTextbook and Media Solution List of Accounts Save for Later Unearned Service Revenue (To record sales) 36,160 2,935 Crec 山 (To record cost of goods sold) 든 Attempts: unlimited Submit Answer The parts of this question must be completed in order. This part will be available when you complete the part above. SUPPORT

← Chapter 17 - Homework Question 3 of 5 View Policies Show Attempt History < > Current Attempt in Progress 12.27/20 E Ritt Ranch & Farm is a distributor of ranch and farm equipment. Its products range from small tools, power equipment for trench- digging and fencing, grain dryers, and barn winches. Most products are sold direct via its company catalog and Internet site. However, given some of its specialty products, select farm implement stores carry Ritt's products. Pricing and cost information on three of Ritt's most popular products are as follows. Standalone Item Selling Price (Cost) Mini-trencher $3,600 ($2,000) Power fence hole auger 1,200 (800) Grain/hay dryer 14,000 (11,000) Respond to the requirements related to the following independent revenue arrangements for Ritt Ranch & Farm. (a) Your answer is correct. On January 1, 2025, Ritt sells 40 augers to Mills Farm & Fleet for $48,000. Mills signs a 6-month note at an annual interest rate of 12%. Ritt allows Mills to return any auger that it cannot use within 60 days and receive a full refund. Based on prior experience, Ritt estimates that 5% of units sold to customers like Mills will be returned (using the most likely outcome approach). Ritt's costs to recover the products will be immaterial, and the returned augers are expected to be resold at a profit. Prepare the journal entry for Ritt on January 1, 2025. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) (b) Date Account Titles and Explanation Jan. 1, 2025 Notes Receivable Sales Revenue (To record sales) Jan. 1, 2025 Cost of Goods Sold Inventory (To record cost of goods sold) eTextbook and Media Solution List of Accounts Your answer is correct. Debit 48,000 32,000 Credit 48,000 32,000 Attempts: unlimited On August 10, 2025, Ritt sells 16 mini-trenchers to a farm co-op in western Minnesota on account. Ritt provides a 4% volume discount on the mini-trenchers if the co-op has a 15% increase in purchases from Ritt compared to the prior year. Given the slowdown in the farm economy, sales to the co-op have been flat, and it is highly uncertain that the benchmark will be met. Prepare the journal entry for Ritt on August 10, 2025. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) (c) Date Account Titles and Explanation Aug. 10, 2025 Accounts Receivable Sales Revenue (To record sales) Aug. 10, 2025 Cost of Goods Sold Inventory (To record cost of goods sold) eTextbook and Media Solution List of Accounts - Your answer is partially correct. Debit 57,600 32,000 Credit 57,600 32,000 Assistance Used Attempts: unlimited Ritt sells three grain/hay dryers to a local farmer at a total contract price of $45,200. In addition to the dryers, Ritt provides installation, which has a standalone selling price of $1,000 per unit installed. The contract payment also includes a $1,200 maintenance plan for the dryers for 3 years after installation. Ritt signs the contract on June 20, 2025, and receives a 20% down payment from the farmer. The dryers are delivered and installed on October 1, 2025, and full payment is made to Ritt. Prepare the journal entries for Ritt in 2025 related to this arrangement. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,275. List all debit entries before credit entries. Record journal entries in the order presented in the problem. Do not round intermediate calculations.) (d) Date Account Titles and Explanation June 20, 2025 Cash Accounts Receivable Debit 9,040 36,160 Unearned Service Revenue 1,174 Unearned Sales Revenue Oct. 1, 2025 Cash Accounts Receivable (To record payment received) eTextbook and Media Solution List of Accounts Save for Later Unearned Service Revenue (To record sales) 36,160 2,935 Crec 山 (To record cost of goods sold) 든 Attempts: unlimited Submit Answer The parts of this question must be completed in order. This part will be available when you complete the part above. SUPPORT

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter1: Introduction To Finance For Entrepreneurs

Section: Chapter Questions

Problem 7SEP

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